Moving Averages - Technical Analysis from A to Z
A Moving Average is an indicator that shows the average value of a security's price over a period of time.
When calculating a moving average, a mathematical analysis of the security's average value over a predetermined time
period is made. As the security's price changes, its average price moves up or down.
The most popular method of interpreting a moving average is to compare the relationship between a moving average
of the security's price with the security's price itself. A buy signal is generated when the security's price rises
above its moving average and a sell signal is generated when the security's price falls below its moving average.